📈 Is Now Really the Time to Be Buying Stocks???

Sayaka
2021-12-16

It's very reasonable, then, to wonder whether the market will crash sometime soon and possibly crash hard. If you're wondering whether it makes sense to be buying stocks now, my answer would be yes. Read on for three reasons why. What would you do when $Apple(AAPL)$goes back to $150? Or if the S&P $S&P500 ETF(SPY)$drops more than 30%? Is Tesla$Tesla Motors(TSLA)$ still on a bargain??? 📉

Are we in a bubble?

1. The market could keep surging

One reason to not pause your stock buying is that the market may still post another year or two or three of growth, and you'd be stuck on the sidelines.

Imagine it's 2012 or 2020, and you're wondering whether you should steer clear of the stock market. You'd be aware of multiple years of strong growth, worrying about a crash. But look what happens after those years: more gains.

• The market can go up or down slightly or sharply in any year.

• Despite many occasional downturns, the market has kept rising over the long run.

• Every downturn has been followed by a recovery and new highs.

Since there are occasional (and inevitable) stock market crashes and corrections, it's best to not invest in stocks with any money you'll need for at least five years (if not 10, to be more conservative). But with long-term money, stocks are many people's best path to wealth-building. Even if you invest right before a crash, your long-term dollars should have time to recover and grow.

By the way, an excellent way to invest in the overall stock market easily and quickly is via an index fund, such as one that tracks the S&P 500.

2. There are still undervalued stocks available

While it's rarely smart to stay out of the stock market due to worries about crashes, it can be smart to stay away from certain stocks. At any given time, there will be plenty of stocks in the market that have surged to values far above their intrinsic values, given their expected growth -- and plenty of stocks that are undervalued.

For best results, aim to only buy stocks when they seem undervalued because overvalued stocks could fall back to reasonable valuations at some point before advancing again. Value investors, who count among their ranks super investors such as Warren Buffett, always seek undervalued stocks -- ones that offer a margin of safety.

That doesn't mean you have to avoid growth stocks, which often seem overvalued, but do take their valuation into account and remember that some will be more undervalued than others. And also, overvalued stocks have a reasonable chance to grow into and beyond their intrinsic values.

3. The market may have crashed by the time you read this📉

Finally, another reason why you might not want to stay out of the stock market is that between the time this article is written and published, it might have crashed! If that's the case, it's likely an especially wonderful time to invest in stocks because most of them will have fallen in value, some to very attractive levels.

Stock market crashes offer great opportunities for investors. Stock prices will be lower, and dividend-paying stocks' dividend yields will be higher (because as a stock price falls, a yield rises, and vice versa).

Don't stay away from the stock market if you're afraid it might crash. Instead, only invest in it with long-term money, and perhaps invest in it gradually. If you park a certain sum in the market every month or few months, you'll be investing when it's up a little and down a little

Stay Invested but be cautious when it changes

I don't know about you, but I always pay attention when some of the best growth investors in the world gives me a stock tip on TipRanks for their price targets and this is available for everyone to view. So, make use of free resources online to help you in your investment decisions! NOT Financial advice!  

免责声明:上述内容仅代表发帖人个人观点,不构成本平台的任何投资建议。

精彩评论

  • LesleyNewman
    2021-12-16
    LesleyNewman
    "By the way, an excellent way to invest in the overall stock market easily and quickly is via an index fund, such as one that tracks the S&P 500." hhh, I like this, good idea.
  • JulianAlerander
    2021-12-16
    JulianAlerander
    different analysts have different valuation methods for different stock prices, but what is right?
  • MariaEvelina
    2021-12-16
    MariaEvelina
    I love undervalued stocks very much, and once they are discovered by other investors, the returns are huge.🤔
  • BonnieHoyle
    2021-12-16
    BonnieHoyle
    Stock market crashes will give chance to inverstors, but it wll make real economy damage.
  • BartonBecky
    2021-12-16
    BartonBecky
    growth stocks is also worth considering, but like you said, you have to be careful
  • JackPowell
    2021-12-16
    JackPowell
    although the market fluctuated again a few days ago, it can now be seen that it has stabilized. It will still be great before Christmas.
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